When should FSA proceed releases from normal income security cease?

The correct choice indicates that the FSA should cease releases from normal income security upon total account acceleration. Total account acceleration refers to a situation where the entire loan amount becomes due to the lender because of default or other specified conditions. When this occurs, the borrower is typically in significant distress, which impacts their ability to generate income from the secured asset or source of repayment. Therefore, it makes sense for the FSA to stop the releases from normal income security at this point to mitigate further financial risks and to reassess the status of the account.

Understanding that total account acceleration reflects a critical change in the borrower's financial situation helps clarify why this specific point is key in the decision-making process. It allows FSA to focus on recovery options and possibly restructure the borrower's approach rather than continue releasing funds that may no longer be applicable or beneficial given the borrower's status.